Form MO-NRI, Missouri Income Percentage for tax year 2021 is estimated to be finalized and available in TurboTax on 02/10/2022
I am an Illinois resident who spends about 85% of my time remote working from Illinois. The current form is not subtracting the Remote Wages amount from the allocated Missouri wages prior to computing my tax.
Why is this?
You are correct in that your income needs to be allocated between IL and MO to reflect that 15% of the wages you earn are for services performed within MO. The remaining 85% of your wages are for services performed in IL. The MO Department of Revenue supports this type of allocation in that they have stated the following:
"If you perform services partly within and partly out of the state, only the wages you are paid for the services performed within Missouri are subject to Missouri income tax. The Form(s) W-2 issued to you from your employer(s) should indicate the state in which the wages were paid, along with the wages you earned in that state. You must allocate your Missouri source income on Form MO-N RI and complete Form MO-1040."
Regarding the process to correct the allocation, review your entries in the Personal Info section of TurboTax. Make sure your residency is IL but that you have also indicated that you earned income in another state, e.g., MO. As you went through the MO section, you should have seen a page entitled "Remote Work," and that is where you will enter your remote income amount. For example, the instructions on this page provide the following with regard to your remote work:
"If you performed remote work for a Missouri employer outside of Missouri during 2020, the portion of income earned while working outside Missouri is not taxable to Missouri. Amounts entered as remote work income will be subtracted from Missouri sourced wages transferred from your federal return."
Review the MO section again, and follow-up with additional information regarding whether you have seen the "Remote Work" page and what amount you entered on that page assuming you were able to find it.
Below is a link to the MO Department of Revenue which explains how, among other things, remote work is handled.
I understand what "should be happening" and I've completed all of the necessary fields. TurboTax is not subtracting my Remote Work amount from my MO wages when it is computing my Missouri Tax. That's my issue.
Just to clarify, at the page in the MO section when you were asked to enter your remote work, did you enter 85% of your total wages?
Below are two screenshots from our test return. In our test return, (the first screenshot) taxpayer George had gross income from all sources and some of that income was MO source income. The next screenshot shows the income ratios and provides more detail about the applicable MO taxes for the MO source income. In other words, in our test return, the only income being taxed by MO is the MO source income. Review these screenshots and let us know if you have seen these while preparing your return, or if you have seen similar screens.
From your screen shots, do I manually subtract what I entered for Remote Wages from the MO W-2 Reported Wages?
I would have expected that subtraction to happen automatically after entering my Remote Wages, but if I need to manually subtract, then I will do so. I've attached the three pages showing my Remote Wages and then the same two screens as you have shown.
Yes, you will subtract the remote source income and enter your wages that are actually taxable to MO in the box for MO source income.
Today is Feb. 16. I printed the MO Tax Return on Feb. 15 and the MO-NRI form was not included. Will I receive some kind of text or email when the MO-NRI form IS available?